Hilton Worldwide Holdings Inc (HLT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -2,360,000 | -1,102,000 | -821,000 | -1,490,000 | -482,000 |
| Debt-to-capital ratio | — | — | — | — | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-2,360,000K)
= —
The debt-to-capital ratio for Hilton Worldwide Holdings Inc has shown an upward trend from 1.06 in 2019 to 1.35 in 2023. This ratio indicates the proportion of the company's capital that is funded by debt. A higher debt-to-capital ratio suggests a higher reliance on debt financing, which can increase financial risk due to interest payments and potential default. The increase in the ratio over the past five years indicates a growing level of debt relative to the total capital structure of the company. It is essential for investors and stakeholders to monitor this trend closely as a high debt-to-capital ratio may impact the company's ability to meet its financial obligations in the long term and may signal financial distress.
Peer comparison
Dec 31, 2023